Bookkeeping Checklist for Your Home Business

2009 is over, and 2010 is underway. However, you might be getting your home business accounts in order for tax time and your tax deductions. This is a good thing. Outright.com emailed me a checklist of things you should be doing this time of year:

* Record transactions: You want to make sure that you have recorded everything from your various accounts. Without records, these things don’t exist. You can double check transactions against your statements and/or digital receipts that you might have.

* Categorization: You want to make sure that everything is properly categorized in your records so that it can be appropriately deducted on your tax return form.

* Remember mileage: Hopefully, you have been keeping track of the mileage you use when traveling on behalf of your home business.

* W-9s and 1099s: You need to issue 1099s for your contractors by the end of January. This means that you need to make sure that you have updated W-9 forms from those that do work for you throughout the year.

* Estimated taxes: Your last installment of estimated taxes for 2009 is due January 15th, 2010. Make sure you get that off on time, since the IRS will charge you an interest penalty if you are late.

* Check your P&L: After you prepare your yearly profit and loss statement, it is a good idea to check over it. And then check over it again. You want to make sure that everything is in proper order, and that your P&L is accurate.